Summary LML4805 - Insurance Law SUMMARIES WITH LATEST QUESTIONS AND ANSWERS

General principles of insurance law Ch 1 introduction history and sources of insurance law 5. prelim def of ins contract: Lake v Reinsurance corp: A contract between an insurer (or assurer) and an insured (or assured) whereby the insurer undertakes in return for the payment of a price or premium to render to the insured a sum of money or its equivalent on the happening of a specified uncertain event in which the insured has some interest. - def bridges gap between indemnity and non-indemnity insurance - Demarcates insurance from wagers by requiring interest 7. def and nature of ins law: consists of conclusion and consequence of ins contracts (mainly private ins law), law of damages, rules on insurance intermediaries, insurance tax law, insurance company or supervision law, certain acts (mainly public ins law) - rules peculiar to ins law: insurable interest, subrogation, double insurance - rules that apply to all contracts: offer and acceptance, contracts in favour of third parties Classification of ins contracts 8. purpose and criteria: may reflect difference in underlying legal principles - crit: nature of interest; nature of event insured against, how recoverable amount determined, how profits of insurer dealt with 9. indemnity and capital insurance: - indemnity= contract provides that the insurer will indemnify the insured for patrimonial loss or damage suffered as the proximate result of the happening of the event insured against. Restores injured to position quo ante, no profit made. Uncertain event. - capital= insurer undertakes to pay a specified amount or periodical amounts to the insured on the happening of the event insured against. Event relates to person of insured or third party. May be certain event, eg death - difference lies in nature of interest insured/ object of insurance; patrimonial and non-patrimonial interest - law determines which interests may be insured - capital insurers may not claim proportionate contribution by other insurers; or demand subrogation - doctrine of imputation of benefits do not apply to capital ins (collateral benefits) 10. property and liability ins: - property (asset) ins= nature of interest insured is positive element (assets) in patrimony; eg ownership in house; expectation of benefit - liability=negative elements of patrimony; eg medical expenses , third party 11. classific acc to nature of event insured against: marine, fire, personal accident ins; incl capital and indemnity 12. short-term and long-term ins: acts - short-term= providing policy benefits under defined short term policies eg engineering policy, liability policy, motor policy - long-term policy= providing policy benefits under defined long-term policies, eg disability policy, life policy - real diff not clear, administrative purpose 13. valued and unvalued policies: - valued= specifies value for object of insurance; avoids difficulty of proving value of object of ins to determine extent of insured’s loss; must still prove loss and may claim only that